HAUPPAUGE, N.Y., Aug. 31, 2017 /PRNewswire/ -- VOXX
International Corporation (NASDAQ: VOXX), today announced that it
has closed on its previously announced sale of Hirschmann Car
Communication GmbH and its worldwide subsidiaries (collectively,
"Hirschmann") to a subsidiary of TE Connectivity Ltd. (NYSE: TEL).
The Company received approximately 149.0
million Euro or $170.0 million
upon closing based on the terms of the sale and forward contracts
at an average U.S. dollar exchange rate of approximately 1.14.
There may be additional proceeds received by VOXX, which will be
based upon final working capital adjustments to be calculated
within 75 days.
Pat Lavelle, President and CEO of
VOXX International Corporation stated, "With this transaction
closed, we are now in position to pay down our debt in full, which
will save us more than $6.0 million
in interest payments annually, while providing us with cash on hand
and full access to our banking facilities to support our business
and pursue a targeted M&A strategy. We are looking to grow
organically within each of our segments and inorganically, through
complementary acquisitions or ventures that will strengthen our
offering, customer reach and financials. Our focus will
predominantly be in the domestic markets, where we can leverage our
distribution into the retail and automotive sectors and we intend
to stay within our current areas of expertise. Over the next year,
we will look for synergies and areas to lower our fixed expenses
given lower sales volumes related to the Hirschmann sale, while at
the same time, ensuring we have the foundation to support accretive
acquisitions. We are exploring all avenues that we believe will
lead to great value for our customers, employees and
shareholders."
John Shalam, Founder and Chairman
of VOXX International Corporation added, "I would like to extend my
sincere appreciation and gratitude to the team at Hirschmann, and
wish them nothing but continued success in the years ahead. They
have enjoyed decades of growth due to their commitment to
innovation, and by partnering with their customers to continuously
deliver the best antenna and tuner technologies in the industry.
Their passion to be at the forefront will only be intensified with
TE Connectivity by their side. For VOXX, this is a transformative
event as it enables us to strengthen our balance sheet and gives us
added flexibility to pursue investments in our current business,
and in future technologies and companies we believe will add value.
We have significant assets within our portfolio, such as EyeLock,
Klipsch, Jamo, Acoustic Research, RCA, 808 Audio and more, as well
as new contracts for rear-seat infotainment with some of the
largest Automotive OEMs in the world, such as General Motors and
Ford. While it will take us time to realign our business and drive
savings, we are focused on generating consistent cash flow and
profitability in the years ahead."
As noted in the Company's press release issued on June 26, 2017, VOXX International Corporation
will continue to operate in the Automotive industry and will retain
its ongoing OEM business that is not part of this transaction
through VOXXHirschmann Corporation. The Company will also continue
its Automotive Aftermarket business through its proprietary brands
and 3rd-party distribution agreements. The continuing operations
include the Company's market-leading rear-seat infotainment
solutions, car security and remote start systems, remote start
modules, app-based vehicle security solutions, keyless entry
products and its newest innovation, the eFob, satellite radio
products, and telematics, among others. Business lines that will be
sold as part of this agreement include Hirschmann's antenna, smart
antenna, multi-digital tuner and commercial asset tracking
business, which incorporates various technologies and product
lines. Under the terms of the agreement, VOXX International will
phase out the VOXXHirschmann name over a period of two years.
Wells Fargo Securities is acting as exclusive financial advisor
to VOXX International on the transaction.
About VOXX International Corporation
VOXX
International Corporation (NASDAQ: VOXX) has grown into a worldwide
leader in many automotive and consumer electronics and accessories
categories, as well as premium high-end audio. Today, VOXX
International Corporation has an extensive distribution network
that includes power retailers, mass merchandisers, 12-volt
specialists and most of the world's leading automotive
manufacturers. The Company has an international footprint in
Europe, Asia, Mexico
and South America, and a growing
portfolio, which now comprises over 30 trusted brands. Among the
key domestic brands are Klipsch®, RCA®, Invision®, Jensen®,
Audiovox®, Terk®, Acoustic Research®, Advent®, Code Alarm®, Car
Connection®, 808®, AR for Her®, and Prestige®. International brands
include Klipsch®, Jamo®, Energy®, Mirage®, Mac Audio®, Magnat®,
Heco®, Schwaiger®, Oehlbach® and Incaar™. For additional
information, please visit our Web site at www.voxxintl.com.
Safe Harbor Statement
Except for historical
information contained herein, statements made in this release that
would constitute forward-looking statements may involve certain
risks and uncertainties. All forward-looking statements made in
this release are based on currently available information and the
Company assumes no responsibility to update any such
forward-looking statements. The following factors, among others,
may cause actual results to differ materially from the results
suggested in the forward-looking statements. The factors include,
but are not limited to risks that may result from changes in the
Company's business operations; our ability to keep pace with
technological advances; significant competition in the automotive,
premium audio and consumer accessories businesses; our
relationships with key suppliers and customers; quality and
consumer acceptance of newly introduced products; market
volatility; non-availability of product; excess inventory; price
and product competition; new product introductions; foreign
currency fluctuations and concerns regarding the European debt
crisis; restrictive debt covenants; the possibility that the review
of our prior filings by the SEC may result in changes to our
financial statements; and the possibility that stockholders or
regulatory authorities may initiate proceedings against VOXX
International Corporation and/or our officers and directors as a
result of any restatements. Risk factors associated with our
business, including some of the facts set forth herein, are
detailed in the Company's Form 10-K for the fiscal year ended
February 28, 2017.
Company Contact:
Glenn Wiener, President
GW Communications
Tel: 212-786-6011
Email: gwiener@GWCco.com
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SOURCE VOXX International Corporation